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New job...Rolling over 401k w/ a loan balance?
Posted on 9/11/18 at 6:36 pm
Posted on 9/11/18 at 6:36 pm
Started a new job, and i want to roll over my 401k from old job to new job.
I took out a small loan against my 401k at my old job a few months ago, that i was paying back (out of weekly paycheck), and still have a balance.
How do i go about rolling the 401k over from my old job to new job with me still having a small balance needing to be paid off?
I took out a small loan against my 401k at my old job a few months ago, that i was paying back (out of weekly paycheck), and still have a balance.
How do i go about rolling the 401k over from my old job to new job with me still having a small balance needing to be paid off?
5
Posted on 9/11/18 at 6:41 pm to Modern
Pay off the balance immediately. Leaving jobs usually means it's due in full.
Posted on 9/11/18 at 6:49 pm to Modern
If you don't pay the balance before you leave, it counts as an early withdrawal and will have associated tax penalties.
Posted on 9/11/18 at 7:07 pm to Modern
Depends on your plans rules. I was in a similar situation as you but as long as I keep making payments on the loan everything is good. Here’s another thing though, I can’t roll my old 401k into my new employer’s 401k plan or an IRA until the loan is paid back without it being an early withdrawal.
Posted on 9/12/18 at 9:01 am to Modern
You probably want to pay it off. It will likely be treated as a deemed distribution at the time of rollover and taxes will be due. Check your plan document to be sure of how this is treated.
I’ve never heard of rolling over a loan and deal with 401k plans a good bit. Lots of plans don’t even allow loans so you would need knowledge of the plan you are rolling into to be sure
I’ve never heard of rolling over a loan and deal with 401k plans a good bit. Lots of plans don’t even allow loans so you would need knowledge of the plan you are rolling into to be sure
Posted on 9/13/18 at 6:46 pm to Modern
When I switched jobs I was able to continue paying on my loan without any penalties depends on plan like others have said
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